"The challenges facing our competitive wholesale power markets in RTOs and ISOs
are real, and the Commission, with the issuance of today's Advance Notice of
Proposed Rulemaking (ANOPR), has taken a significant step in addressing certain
issues that were raised during our recent technical conferences on wholesale
competition, demand response, and market monitoring. The intent of our ANOPR is
to address four separate and distinct areas where the Commission has received
detailed testimony where improvements could be made.

Today's ANOPR represents a collection of four independent proposals, the purpose of
which is to improve wholesale competition in regions with organized markets. Our
decision to take action recognizes the challenges that the markets (and its
participants) are encountering and our ANOPR solicits comments and proposes initial
solutions to correct or improve upon current practices. Among the proposals under
consideration and open for comment, the Commission will examine: (1) the role and
ability of demand response to participate in organized markets; (2) methods to
increase opportunities for long-term power contracting; (3) how RTOs/ISOs and their
Boards can better respond to the concerns of market participants; and (4) whether
our policies concerning the role and function of market monitors can be improved.

While this amalgamation of proposals is considerable in its breadth, I should
emphasize that this ANOPR is just one of many actions that the Commission is taking
to improve and strengthen competitive markets. Simply said, this is not the first
action the Commission has taken, and it will likely not be the last action. I would
also like to dispel the false implication that all of the problems are occurring in the
competitive wholesale markets, because it is simply not true. And while today's
ANOPR does not address potential reforms outside the organized market regions, the
Commission is examining issues concerning the bilateral wholesale markets in other
proceedings and is working towards making comparable improvements.

Ultimately, patience and a commitment towards improving our competitive markets
will yield better functioning markets that send more accurate price signals, thereby
driving more efficient economic decisions, and resulting in the construction of more
transmission infrastructure to deliver reasonably priced energy and improved
reliability to the benefit of all customers. With that, I look forward to interested
parties sharing their comments and concerns with me and my fellow
Commissioners."